Canada: 2013 Article IV Consultation

Summary:This 2013 Article IV Consultation highlights that the Canadian economy strengthened in 2013 after a subdued performance in 2012, but the underlying growth has remained modest. Despite the depreciating exchange rate, non-energy exports remained well below the levels reached after earlier recessions. The housing market has cooled, owing in part to macro-prudential measures adopted in the past. Economic growth is expected to accelerate to 2¼ percent in 2014, up from an estimated 1¾ percent in 2013. Canada’s export growth should benefit from the projected pick-up in U.S. growth in 2014, boosting business investment.